Preowned cars sales to reach 10.92 mn units by FY28 – Indian Blue Book Report 2023

Mumbai, May 23, 2024 – According to the latest edition of the Indian Blue Book (IBB) report by car&bike and Volkswagen’s Das WeltAuto., the pre-owned car sales market in India is projected to reach 10.92 million units by FY28. The Indian used car industry, valued at $31.33 billion in FY23, is expected to surpass $70.48 billion by FY28.

The primary reason for owners selling their cars is to upgrade to a newer pre-owned vehicle, while budget buyers are mainly seeking quality cars. Additionally, 71% of buyers now consider the Make, Model, and Variant (MMV) of the car as a major factor in their purchasing decision.

“The pre-owned car market is experiencing significant growth, potentially doubling by FY 2028. This growth is driven by evolving trends and customer preferences in selecting pre-owned vehicles. A notable shift towards prioritizing safety features, similar to trends in the new car industry, has made brands like Volkswagen more accessible and in demand. Our 5-star GNCAP-rated models, the Taigun and Virtus, are particularly favored. The high preference for safety features among customers is positively impacting the residual value of Volkswagen cars, especially the Taigun. We are confident that Das WeltAuto. will continue to grow as one of the top certified pre-owned car brands in India,” said Mr. Ashish Gupta, Brand Director, Volkswagen Passenger Cars India.

Buyer Highlights

  • The report found that a majority of buyers are highly budget-conscious (63%) and seek quality cars.
  • Additionally, 71% of buyers now consider the overall costs of repairs and servicing as a significant factor in their decision-making.
  • A notable shift has been observed among consumers, who increasingly prioritize safety features in used cars. This trend has benefited brands like Volkswagen, known for their 5-star GNCAP-rated models such as the Taigun and Virtus.
  • When it comes to exploring options, 45% of buyers prefer local dealers, followed by Auto Tech start-ups (26%) and OEM-backed brands (23%). Regarding car leasing, 28% of buyers are aware of the concept, and 62% expressed interest in considering it in the future.
  • Warranty and financial assistance are the top demanded services. However, a majority of 56% do not prefer purchasing a used electric vehicle (EV).

Seller Perspective

  • Upgrading to a newer used car is the primary reason for selling among 59% of respondents, with many also selling extra cars bought during COVID-19 now that they find having another vehicle sufficient.
  • The Fastrack processes in auto tech startups and OEM-backed companies have reduced the actual Turn Around Time (TAT) to sell a car to just three days.
  • For sellers, receiving full payment within 24 hours is the top priority, followed by the convenience of having the vehicle inspected at a location of their choice.

“The latest edition of the Indian Blue Book, in collaboration with Das WeltAuto. by Volkswagen, reaffirms our confidence in the explosive growth potential of the Indian pre-owned car market. The increasing involvement of organized players is bringing stability and trust to this market, with consistent profitability and providing an exceptional customer experience as top priorities,” said Mr. Ashutosh Pandey, CEO & MD, of Mahindra First Choice.

Mahindra First Choice Wheels backed the launch of the Indian Blue Book’s first edition in 2015 to highlight trends in the used car industry in India. Since then, this annual report has become the largest and most comprehensive primary research conducted in India. Since 2022, Das WeltAuto., the pre-owned car brand of Volkswagen, and car&bike, a 100% subsidiary of Mahindra First Choice Wheels, have co-curated this research report.

Also read Volkswagen India Unveiled the latest GT Plus Sport and GT Line Variants for the Taigun

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